Wk28: Market Recap

19 Jul

With a market breadth of 28:1 and 10:2 confirming the intraday moves higher, it was apparent that they would hold throughout the week. The breadth is an indicator of volume flowing into up stocks compared to volume flowing into down stocks. Essentially 10 and 28 times more volume was flowing into up stocks than down stocks. Any reading over 10 is extremely bullish. 1:1 is parody.
When a pattern as strong and clear as a head and shoulders fails, the amount of people covering their shorts involuntarily pushes the markets higher. This is what we saw happen in week 28.

No comments yet

Leave a Reply